SEC Halts Conversion of Grayscale ETF With BTC, ETH, SOL, XRP, ADA

The U.S. Securities and Exchange Commission’s leaders are reviewing the company’s current approval of a Grayscale effort to transform a fund into an exchange-traded fund (ETF), a letter dated July 1 stated.

The SEC allowed Grayscale to uplist the Digital Large Cap Fund (GDLC), which holds $755 million in bitcoin

, Ethereum , XRP , Solana and Cardano , into an ETF by delegated authority — which means the SEC’s commissioners didn’t vote to approve the conversion, however relatively company workers gave the sign-off.

“This letter is to notify you that, pursuant to Rule 431 of the Commission’s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action,” the letter, addressed to the New York Stock Exchange, stated. “In accordance with Rule 431(e), the July 1, 2025 order is stayed until the Commission orders otherwise.”

The SEC stated it could let the NYSE know “of any pertinent action taken by the Commission.”

Any commissioner can ask that an SEC motion be reviewed. In the previous, commissioners have requested to evaluation ETF disapprovals, for instance. The letter didn’t point out which commissioner or commissioners requested for the evaluation.

GDLC is benchmarked to CoinDesk’s CoinDesk 5 Index.

Spokespeople for Grayscale and the NYSE didn’t instantly return a request for remark.

An SEC spokesperson declined to touch upon the letter.

UPDATE (July 2, 2025, 20:05 UTC): Adds further element, SEC declining to remark.